Competitiveness and Potential of Indonesian Natural Rubber Trade in Non-Traditional Countries

This title will be presented on Friday, December 15, 2023 at 13.45-13.55 GMT+7

Abstract

This title will be presented on Friday, December 15, 2023 at 13.45-13.55 GMT+7

The study aims to analyze the potential market in non-traditional country from Indonesia natural rubber and its export determinant. X-Model and panel regression were applied in this study by using periods between 2015 until 2020 with seven countries. Our result revealed that Indonesia has export potential in several non-traditional countries. Furthermore, there are some factors are influencing the export flow of Indonesia rubber to non-traditional countries, namely Gross Domestic Products (GDP) Indonesia and importer countries, economic distance, real exchange rate and Quality of Port Infrastructure (QPI). The development of natural rubber export could be considered by utilizing the importing country's GDP is high and economic distance. Both of these aspects relate to market prospects and costs for export expansion. There are several managerial implications, such as the consideration of GDP factor by policymakers as one of the main determinants and the maintain of Indonesia natural rubber export to non-traditional countries. Political aspect must be explored in the further study related natural rubber export in Indonesia. The study about non-traditional market relatively rare, especially for Indonesia natural rubber export. Therefore, the development of Indonesian natural rubber market can be facilitated through this study.